EIT considers selling Axiom Telecom stake

EIT could raise $300m by selling its stake in Axion Telecom - Reuters
Faisal Al Bannai, CEO, Axiom Telecom, said that every shareholder has a right to evaluate their stake.
Faisal Al Bannai, CEO, Axiom Telecom, said that every shareholder has a right to evaluate their stake.

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Emirates International Telecommunications LLC (EIT), the telecoms division of Dubai Holding, is mulling the sale of its remaining 26% stake in Axiom Telecom, a UAE-based mobile phone retailer, according to a report from Reuters, which cited three sources familiar with the matter.

A sale could raise $300 million for EIT, a banking source said.

Dubai Holding is nominating an adviser to weigh up options for the stake, two other sources told Reuters, which added that Dubai Holding declined to comment on the matter.

Faisal Al Bannai, CEO, Axiom Telecom, would not be drawn on the potential stake sale. He told Reuters that every Axiom shareholder “has the right to evaluate their stake and test the market”.

The news followed closely from a report that Etisalat, the UAE’s incumbent operator, plans to sell its entire 13.29% stake in PT XL Axiata, Indonesia's third telecom operator.

In June 2011, Axiom Telecom signed an agreement with Mannai Corporation to sell a 35% stake in the company. The deal came after Axiom cancelled its planned IPO on Nasdaq Dubai in December 2010.

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